Member Sign In

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.

If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.

Westport Fuel Systems (WPRT) Posts Narrower Loss in Q3

Westport Fuel Systems Inc. (WPRT - Free Report) recorded adjusted loss of 14 cents per share in the third quarter of 2016, narrower than the year-ago loss of 29 cents. Moreover, the adjusted loss, which excludes 16 cents from non-recurring items, was much narrower than the Zacks Consensus Estimate of a loss of 23 cents.

Including non-recurring items, net loss amounted to $33.3 million or 30 cents per share in the reported quarter, mainly due to a $17.5 million one-time restructuring charge associated with facilities closures and severance costs. The reported net loss for the third quarter of 2015 was $37.4 million, including a goodwill impairment charge of $18.7 million.

Westport Fuel Systems logged revenues of $76.1 million in the third quarter of 2016, up 241% year over year. While the increase was primarily driven by the addition of Fuel Systems’ revenues, an 8.1% rise in Westport’s revenues stemmed from the completion of an important milestone within the company's Westport HPDI programs. However, the top line missed the Zacks Consensus Estimate of $82 million.

Consolidated gross margin decreased 12.5% to $22.5 million (33.3% of sales) in third-quarter 2016 from $25.7 million (31.1% of sales) in the year-ago quarter. The increase in gross margin percentage was mainly due to higher part sales.

Consolidated adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) amounted to a negative $7.6 million, compared with a negative $9.8 million in the third quarter of 2015.

Segment Details

Automotive Business Unit recorded a 137% increase in revenues to $50.9 million due to the addition of Fuel Systems' revenues. Operating loss in the segment widened to $8.64 million in the reported quarter from $8.61 million in the third quarter of 2015.

Industrial Business Unit reported revenues of $22.7 million, which were solely generated from the Fuel Systems business. Operating income at the segment was $1.12 million in the reported quarter.

Corporate and Technology Investments Business Unit revenues soared 213% to $2.5 million from $0.8 million in the year-ago quarter due to the addition of Fuel Systems’ revenues. Operating loss amounted to $17.66 million compared with a loss of $20.05 million recorded a year ago.

The CWI joint venture recorded an 18% decrease in revenues to $67.5 million, mainly due to persistent market headwinds and an overall industry decline in truck volumes, offset partially through higher shipments in the transit market. CWI operating income attributable to Westport Fuel Systems was $2.6 million in the reported quarter compared with $3.5 million in the year-ago period. The decline in operating income was due to lower unit sales and higher engineering expenses, primarily associated with new products and compliance costs for upcoming regulations.

Financial Position

Westport Fuel Systems had cash and cash equivalents of $57.89 million as of Sep 30, 2016, up from $27.1 million as of Dec 31, 2015. Long-term debt was $79.4 million as of Sep 30, 2016, up from $62.4 million as of Dec 31, 2015.

In the first nine months of 2016, Westport Fuel Systems’ cash used in operations was $74.18 million, compared with $54.67 million in the year-ago period.

The company has not provided any guidance for revenue or earnings. However, management does not expect to meet the target of positive adjusted EBITDA for 2016.

Visteon, a Zacks Rank #2 stock, has a long-term growth rate of 23.60%.

Gentex, with a Zacks Rank #2, has a long-term growth rate of 11.17%.

The Best Place to Start Your Stock Search

Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>

Resources

Client Support

Follow Us

Zacks Research is Reported On:

Yahoo

MSN

Marketwatch

Nasdaq

Forbes

Investors.com

Morningstar

Copyright 2017 Zacks Investment Research

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25% per year. These returns cover a period from 1988-2016 and were examined and attested by Baker Tilly Virchow Krause, LLP, an independent accounting firm. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zack Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

Visit performance for information about the performance numbers displayed above.